Elon Musk ‘Rejuvenated’ at Tesla, Says Analyst

Posted on May 27, 2023 by Peter McGuthrie

Tesla CEO Elon Musk has been a polarizing character in the public eye, but it’s tough to deny all he has done to bring the automaker where it is today. With Musk’s recent selection of a new CEO for Twitter, one analyst thinks the entrepreneur could be reinvigorated to focus on Tesla — despite some potential challenges ahead.

Above: A pair of Tesla Model 3s (Image: Casey Murphy / EVANNEX).

In a recent note, Wedbush analyst Dan Ives called Musk a “rejuvenated” Tesla leader following his appointment of Linda Yaccarino as Twitter CEO, according to a report from MarketWatch. Ives finds Musk’s decision promising, combined with the CEO’s statements at the company’s recent shareholder's meeting.

“Twitter in our opinion was a distraction for Musk,” Ives wrote, adding that he thought Musk would remain CEO of Tesla for “at least for the next 5 years.”

Musk is expected to help facilitate Tesla’s Autopilot and Full Self-Driving beta closely, along with production increases, and two new models based on a next-generation platform, which are set to begin production in the coming years. Ives predicts the Twitter shift will let Musk assist Tesla with “all key endeavors,” even as he moves to Chief Technology Officer at the social media company.

Ives is a Tesla bull, and he currently has a Buy rating on the stock with a $215 price target. Comparatively, a FactSet survey shows that Tesla’s average price target out of 47 analysts lands at about $191. As for his reiteration of a Buy rating, Ives pointed to Musk’s recent statements at the shareholder’s meeting and updates on future developments.

“This week Elon Musk laid out a very detailed strategy and road map for Tesla at the shareholder meeting which gives investors some more clarity around the blueprint for the Tesla growth story going forward,” Ives wrote.

Musk also announced plans for Tesla to begin advertising at the meeting, coming at a time when some are concerned about cooling electric vehicle demand and increasing competition from traditional automakers and startups alike. The company’s shareholders also voted to approve every proposal that Tesla endorsed, including the nomination of former executive JB Straubel to the board of directors.

Ives called Tesla’s decision to begin advertising a “major positive” for investors, especially “as competition in the EV landscape heats up in this EV arms race.”

At the time of writing during after-hours trading, Tesla’s shares are trading for $185.00 (-$0.78), up 0.42 percent from the day’s open.

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Source: MarketWatch